United Arab Emirates:
Customs Duty In India Part II

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Re-exports out from U.A.E. Free Trade Zones to a third market
goal beyond the GCC Customs Zones are additionally exempted from
any obligation.

However, such goods when imported with the intention of
re-exporting them as a whole or part to another country, a Deposit
or Guarantee equivalent to the applicable tariff amount on the
goods shall be secured instead of Customs Duty.

For this methodology, the Declaration Type "Import for
Re-Export to Local from ROW (Rest of the World)" should be
cleared. As of now, this is a restricted revelation to those with
esteem higher than AED 20,000 aside from if there should arise an
occurrence of vehicles. The value of the foreign goods that are to
be re-exported, for which customs taxes/duties will receive
refunds, shall not be less than five thousand US dollars.

The period of import for re-exportation may not exceed six
months (180 days). The customs office will make null all or part of
the cash deposits and securities, as customs taxes duties, in the
case, that the goods placed are partly or wholly, for local
consumption, or similarly disposed of, or upon expiry of the
designated period (180 days). The claim for the refund of the
customs taxes or duties shall be filed within 180 days from the
date re-exported.

Goods may be re-exported in the following situations:

Imported products that have not left
from the customs warehouses.

Goods brought into the country under
a Temporary Admission procedure

Products deposited with the customs
warehouses as one of the cases of suspension of customs
taxes/duties.

Foreign goods for which customs taxes
and duties have received payment.

Foreign goods from local markets

Products that have been rejected by
the competent authority. g. Goods imported for re-exportation.

For goods destined directly for Mainland Customs Zones or to a
Free Trade Zone for sale in the U.A.E. and re-exports to GCC
Countries are subject to customs import tariff as per GCC Common
Customs Law that sets the framework for the UAE's Import
Regulations. The exception concerns those under the Act of GCC
Common Customs Law or the effective GCC Economic Agreement or
similar such international agreements within the GCC Regulation.
Accordingly, products can be moved intra-GCC Customs Offices
permitting entry of the remote resources starting with the
one-party state then onto the next. Be that as it may, a
Statistical Export Declaration more likely than not been cleared
from the trading GCC nation for internal developments of such
merchandise and a duplicate of the same must require submission to
the Customs Office. It must require submission for bringing into
the country conveying the "Makasa Stamp" (set-off
component) on the Declaration with a specific end goal to maintain
a strategic distance from the rehashed installment of Customs Duty
at the goal Country. The Declaration write "Import to Local
from GCC" should be cleared for such exchange.

Documents required for Customs Declaration are:

Delivery order (for air or sea
importation)

Bill of Lading used for air or sea
import

Manifest (for introduction by land or
by wooden vessels or the like)

Packing List for multiple/several
good

(The HS code, as well as the
International law for chemicals or hazardous goods, are be
indicated).

The customs office may request the translation of the foreign
documentation into Arabic.

Powers of investigation and enforcement by the Authority under
Common customs law for GCC states;

According to Article 122 of the common customs law for GCC
states the Customs officers are authorized to inspect the goods to
combat smuggling and the means of transport and to search
individuals under the provisions herein and the other applicable
regulations (laws). The searching of the body of a woman, the
search shall be done only by a female officer.

If there are adequate pieces of evidence found, and after
obtaining permission from the competent authority, customs officers
are entitled to inspect any house, store or shop according to the
applicable regulations.

Customs officers are also entitled to as stated in article 128,
detain any individuals suspected to have performed or attempted to
commit an offense or involved in playing a part in any of the
following crimes:

Smuggling

Transporting or acquisition of
contraband

An Arrest for customs officers to make is authorized only in the
following cases (As stated in article 137:

Smuggling offenses in the act.

Resistance to officers or security
officers that impedes an investigation of smuggling cases or
customs offenses or the persons involved therein.

When the persons are acting to escape
to avoid the fines, penalties or compensations that might
arise.

The customs officers authorized to
shall issue the arrest order and produce the arrested person to the
competent authority within 24 from the time of arrest.

Case law in India referring to the Customs duty Jurisdiction

In "Amba Expo Fab V. Authority of Customs (Import)",
Nhava Sheva' – 2012 (12) TMI 395 - CESTAT MUMBAI the show
caused notice was issued by one Commissioner of Customs (Adj),
notwithstanding he didn't pass any decree. The impugned law
passed by Commissioner of Customs (Import), Nhava Sheva who
recorded that he can pick the challenged show cause notice to vide
Notification No. 112/2005-Cus. In the Notification no place it is
exhibited that the impugned show cause notice has received
allotment to Commissioner of Customs (Import), Nhava Sheva for
intercession. The Tribunal held that the challenged decree passed
without jurisdiction requires putting aside.

In "Bengal Ruby Mica Supplies Co. vs. Union of India (UOI)
And Ors. On 2 March 1994, In the present case, customs authority
had no jurisdiction to levy any export duty on "cess"
treating the same to be a part of the assessable value within the
interpreted meaning of Section 14 of the Act. When cess was and is
not a part of the assessable value, any duty realized by said value
shall receive clearance without authority of law and more than the
jurisdiction conferred on the authority. It would not be an
instance of a simple mistake of law or actuality under the
arrangements of the Customs Act, 1962 to levy the export obligation
on "cess" not approved under the Act. A similar upcoming
act will consider the scope and purview of the Customs Act, 1962
and the jurisdiction, authorities, and capability of the officers
under the Act. The Customs Act is comprehensive code just if the
Customs specialists act inside the extent of the arrangements of
the Act, however, if traditions expert acts past the scope of the
Act, at that point the request of the Customs specialists can't
be dealt with as last.

In the case of "Industrial Cables v. Union of India",
supra, a Single Judge of the Punjab and Haryana High Court held
that the removal of the products by the actual officer under
Section 47 of the Customs Act must be attempted after due
adjudication, right off the detail element as to the reality
regardless of whether the Act precludes the import of the
merchandise. Further, the best possible officer was
"Adjudicating Authority" inside the importance of
Sub-section (1) thereof, and this way, the request goes under
Section 47 of the Customs Act is official on the specialists under
the Import (Control) Order.

"Adjudication Procedure"

Segment 122A furnish the methodology for adjudication. The
Section gives that the Adjudicating Authority might, in any
procedures

Under Chapter 14 of the Act; or

Some other arrangements of the
Act

provide an opportunity of being heard at a party in any
proceeding, if the party so desires.

The Adjudicating Authority is enabled to supremacy time to the
gatherings to the proceedings occasionally if the adequate reason
has appeared for this reason. The hearing might be suspended for
motivations to be recorded in composing. Such delay is limited to
just over three times.

"Beneficial owner" implies an individual for whose
sake the goods are being foreign made or sent out or who practices
successful control over the products being transported in or
traded.

Rule 2(b) of the Anti-Dumping Rules. The verdict on account of
NIRMA LIMITED Vs SAINT GOBAIN GLASS INDIA LTD. [2012 (10) TMI 832 -
MADRAS HIGH COURT] challenged - Held the following. "We
don't think of it as important to go into the issue(s) emerging
in the present Special Leave Petitions, to be specific, the exact
significance of the term 'domestic industry' in Rule 2(b)
of the Anti-Dumping Rules which issue is left open for arbitration
in a proper case - SLP discarded being not viable".

Extra-territorial jurisdiction.

The reply to this inquiry is clarified with the assistance of a
judgment go by the Customs, Excise and Gold Tribunal on account of
"Hi Lingos Co. Ltd. Versus Collector of Customs" For this
situation, the appeal was documented against the first order passed
by authority of Customs, Bombay. In this law, the Collector has
requested reallocation of six holders comprising of aggregate 5100
packs proclaimed to be Sodium Tripoly Phosphate (from now on
alluded to as S.T.P.P.). All things considered observed to be Poly
Vinyl Alcohol, under Section 111(d), (f) and (g) of the Customs
Act, however permitting reclamation for re-export to the appellants
(who have transported the shipment from Keelung, Taiwan) on the
installment of a fine of Rs.one crore. The Collector has likewise
forced a punishment of Rs.50 lakhs on the appellants.

The appellants are reported to a trading concern in Taiwan. They
have dispatched six containers of S.T.P.P from Keelung. The
notified party in India according to the B/L is proclaimed to be
M/s U.K. Paint Industries, Delhi. The products are professed to be
of Taiwanese source. The destination port according to B/L is
Bombay. The individual packs containing the material likewise bore
the names of S.T.P.P. The operators of the vessel arranged the
Import General Manifest and conveyed to Customs. In the said
manifest, the load of questions was figuring at thing no. 79 yet
discovered erased, however, the total of the elements continued as
before for release at Bombay, and this thing was likewise not
figuring in the list of items as same bottom cargo.

It, subsequently, appeared to the Department that however the
freight according to the B/L and the manifest prepared was implied
for release at Bombay and stayed on board the vessel touched base
at Bombay, the erasure of this thing was made to influence it to
create the impression that the payload was not implied for release
at Bombay.

The appellants sent a letter to the Collector of Customs, Bombay
looking for consent to permit reshipment of this consignment of 6
containers. Be that as it may, no reasons looking for reshipment
were given in the letter. The appellants in the second letter kept
in touch with the Collector of Customs expressing that they have
authorized one Shri N.H. Shah, Advocate speaking to their case
regarding reshipment of the six containers. M.s U.K. Paint
Industries, New Delhi were also asked to furnish details about this
import consigned in the same. One more transfer of 15 containers
which had touched base by another vessel relegated to M/s. U.K.
Paint Industries, New Delhi was likewise detained, and
consequently, the Customs asked M/s. U.K. Paint Industries to
document the B/E for leeway of the products as per appropriate
system, falling flat which, the Customs would analyze the said
goods and continue with issue according to law. M/s. U.K. Paint
Ind., New Delhi returned expressing in their letter that cargo for
this situation did not have a place with them and they didn't
have any right, title or responsibility for load and consequently
asked for the Customs to manage freight as esteemed fit. The
advocate authorized by the appellants penned in a letter asserting
that the appellants are general dealers and merchants in Taiwan and
by right blue mix-up and pass on their part, they have dispatched
Poly Vinyl Alcohol rather than proclaimed depiction, S.T.P.P. As
both the things are an as white powder, this oversight has
happened. S.T.P.P. was planned for M/s. U.K. Paint Industries, New
Delhi and after shipment of the merchandise, the appellants
understood that omission and in like manner taught their shippers
not to empty the said products at Bombay. Anybody in India and them
does not guarantee the merchandise, being an exporter of the
products, and furthermore, the proprietor, ought to be
reestablished the goods by permitting reshipment. From there on,
the promoter, for the appellants showed up and demonstrated that
the appellants would outfit answers to the questions raised before
by the Department as to the products.

The appellants sent a fax in answer to the inquiry posed, in
which they conceded that there are no written purchase orders
(since it is bought in the open market), no correspondences
separately put or traded by/with M/s. U.K. Paint Industries
concerning the dispatch and they have no particulars about import
permit or the points of interest of the Bank through which
instalment for the products was to be made on receipt of records by
the shippers. Since the representative declined to acknowledge
P.V.A., in the wake of being educated and they made some endeavour
to look alternate purchasers for P.V.A. in India and, consequently,
investigated the likelihood of redirecting the products from Bombay
to Kandla or reshipping the merchandise back. Since the products
have sent wrongly, they would look for reshipment. They
additionally submitted duplicates of different wire messages and
letters to steamer specialists.

In the wake of hearing the advocate and considering the
evidence, the Collector dismissed the conflict of the appellants
that it is an instance of a valid blue mistaken shipment. However,
a piece of their plan to encourage the import of highly esteemed
and great obligation chemicals in the appearance of S.T.P.P. for
dodging obligation and the appellants were conscious of this plan
and passed the impugned order.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

Established on 17 December 1966, The United Nations Commission on International Trade Law (UNCITRAL) was founded in response to the realization that the trans-global community is acutely
economically connected.

The Hong Kong International Arbitration Centre ("HKIAC") has introduced the new HKIAC Procedures for the Administration of Arbitration under the UNCITRAL Arbitration Rules (the "New Procedures"), effective as of January 1, 2015.

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